OLYMPIA, Wash. – A new report from Oxfam, a British advocacy organization focused on income inequality, found that class division is becoming more pronounced.
Oxfam’s March 18 report ties the increasing gap between the haves and have-nots to a combination of corporate decisions and policy trends.
“In our baseline analysis of corporate policies and practices relevant to inequality, we found sobering results. Less than 5% of companies are committed to paying a living wage,” Oxfam said.
The organization observed that widening inequality for the past half-century has drastically eroded the middle class.
“Since the 1970s, the richest 1 percent of Americans have seen their share of the national income nearly double, while the bottom 50 percent have experienced the reverse,” Oxfam said.
While wealthy Americans are comfortable, their less affluent peers are increasingly unable to maintain sustainable financial lives.
“Close to 40 percent of Americans [say] they are unable to cover a $400 emergency expense,” Oxfam said.
Oxfam argued that the economy is approaching a set of circumstances similar to the early 1800s, in which American life was largely stratified between a small cohort of elites and an impoverished majority.
Last year the top 1 percent of American companies owned 97 percent of corporate assets according to the Oxfam report.
There is no consensus amongst economists as to how much inequality will continue to build, but it is likely that the wealthiest individuals will secure a growing portion of American wealth if current trends continue.
